HDFC Bank and Kotak Mahindra Bank emerged as top banking picks with Morgan Stanley maintaining Overweight ratings on both stocks. According to reports from ET Now, HDFC Bank is targeted at ₹1,025 while Kotak Mahindra Bank carries a price target of ₹500. SBI Securities has now joined the positive sentiment, with Sunny Agarwal, Head Fundamental Research, Retail Desk at SBI Securities, remaining positive on private banks, preferring HDFC Bank over Kotak Mahindra Bank after the lender received a clean legal review. As per The Economic Times, Sandeep Bagla of TRUST Mutual Fund sees corrected large-cap valuations as a prime entry point for 2026, especially in banking and IT sectors, with their new Large & Mid Cap Fund targeting this opportunity. Recent developments show Jefferies maintaining Buy with a target price of ₹450, while Citi maintains Buy with a target of ₹485. However, Macquarie maintains Neutral at ₹455 and Investec holds at ₹420, reflecting mixed analyst sentiment on the acquisition's immediate impact.
Prabhudas Lilladher has issued a Buy rating on Kotak Mahindra Bank with a target price of ₹480, following the bank's strategic acquisition of Deutsche Bank's retail banking business in India. The acquisition involves a total purchase consideration of ₹2.82 billion plus asset less liabilities at closing, subject to contractual adjustments. The acquired business comprises approximately ₹290 billion in loans, ₹160 billion in deposits, and ₹105 billion in assets under management, servicing 150,000 customers through 1,000 employees who will join Kotak Mahindra Bank. As per Prabhudas Lilladher's research report dated July 01, 2026, the acquisition is expected to be core RoA/RoE accretive, with the acquired portfolio potentially delivering core RoA of 1.9-2.1% and core RoE of 13-15%. The transaction is projected to increase core PAT by approximately 3.0% for FY28 while enhancing core RoE to 12.5-13.0% from 11.3%.
The IT sector presented a mixed picture with TCS receiving an Equal Weight rating from Morgan Stanley, downgraded from Overweight, with a target price of ₹2,200. As reported by ET Now, other major IT companies including Infosys, Wipro, HCL Technologies, Tech Mahindra, Coforge, LTIMindtree, L&T Technology Services, and Cyient all maintained neutral ratings from Morgan Stanley. The sector's performance reflects the current market dynamics affecting technology stocks. According to The Economic Times, analysts anticipate a continued positive outlook for Indian equities, with the Nifty expected to hold above the 24,000 mark, bolstered by stable geopolitical conditions and robust foreign investment. Goldman Sachs maintains Buy on Titan with a target of ₹5,400, citing gold price correlation with jewellery revenue growth and potential for margin expansion. However, Jefferies maintains Underperform on Dr Reddy with a target of ₹1,040, expressing concerns about stretched estimates for key drivers.
InterGlobe Aviation received an Overweight rating from Morgan Stanley with a target price of ₹6,436, while Shriram Finance also maintained an Overweight rating at ₹1,260. According to ET Now, the aviation sector continues to attract positive sentiment, and financial services companies are showing resilience. Paytm received a BUY rating from Goldman Sachs with a target price of ₹1,430, while Eternal (Zomato) also secured a BUY rating at ₹350. As per The Economic Times, experts advise focusing on earnings compounding, financialization, and manufacturing themes for optimal portfolio construction.
Indian stock markets ended Thursday on a high note with the Nifty 50 climbing nearly 1% from its lowest point, fueled by declining energy prices, a stronger rupee, and favorable global trends. According to The Economic Times, analysts anticipate a continued positive outlook for Indian equities, with the Nifty expected to hold above the 24,000 mark. The positive momentum comes amid easing FII selling and South Korea's volatility, though deficient monsoon remains a concern. Upcoming Q1 results are expected to drive stock-specific movements, with experts noting that Nifty investors face two years of flat returns, mirroring past periods that historically led to significant market recoveries with one-year gains ranging from 5% to 50%.
